India added 20% of Pakistan GDP in 2 days to her economy.

[Hemu Vikram Aditya]

wouldnt this move encourage us to buy more foreign things as they would get cheaper and for foreigners our products demand could decrease too

 

[HariPrasad-1]

wouldnt this move encourage us to buy more foreign things as they would get cheaper and for foreigners our products demand coyuld decrease too

I would put it other way. We will have to spend less in buying foreign goods.

Any way we do not buy foreign goods in our day to day life.

 

[Hemu Vikram Aditya]

I would put it other way. We will have to spend less in buying foreign goods.

Any way we do not buy foreign goods in our day to day life.

we do for our computers most of the things are foreign manufactured and we should encourage Indian firms to increase their brand name becasue most of the Bhartiya people care about brand in things like shoes and car if we have a good branded company in this sector whose products would be cheap and we do not have a direct competitor in It in things like graphics card and such if we want to grow faster we need to have firms in the particular sectors (in which we do not have any for example graphics card and such ) and at least one big firm of it and we dont have any cultural thing to support our homegrown firms like Japan has

 

[pringles]

I know zilch about economics and havent read the post fully yet (later), but if 2% appreciation adds some value then any depriciation or increase in dollar value wrt inr will make us cough up some amount, right?

That's a very accurate inference.

Although, people from both sides of the debate wont say it out loud. The government will keep saying "the economy is growing, the numbers back our claims", the industrialists keep saying "the economy could grow at a much higher rate if you follow our so and so recommendation", in this tu tu main main between government and the industrialists, the people are given a feeling that these are the only two points of view that are available, where as, there is a third point of view, that of the common citizen, on whose behalf no one writes.

It has been consistently observed across ALL economies which took the path of industrial manufacturing (and subsequent exports) as their main source of GDP and foreign currency, they have had to resort to artificially devaluing their own currency to present their country as a more profitable destination for foreign investors to set up shop in. A devalued currency means that a foreign investor gets more bang for his buck after currency conversion. This attracts FDI and it also creates more jobs for the domestic population, but it at the same time, it also increases inflation. This is the delicate balance the government tries to maintain.

So, you are right @alphacentury, things are going to get costly. That is the price we pay for creating new jobs for fellow Indians. The overall national impact is net positive, (less jobless youth, less crime, less insurgencies, more stable society), so this devaluation is worth it. If at all you are planning to make heavy duty purchases (house, car, foreign education) get it now, than later, because GOI is more than likely to devalue the INR - USD rate to ~75 in the next 7 years.

RE : @Indx TechStyle

That's the actual phenomenon happened in past mate.
By real GDP growth rate, China would be today less than $5.8 trillions, nowhere near current $12 trillions because CPI & currency appreciation helped them. India actually grew at similar speed in PPP but lagged in nominal.

As Ruppee dollar gap starts to be patched up, India will catch up in nominal too.

This is why Modi keeps taunting 'Harvard economists' who only look at economics as a purely objective, numerical exercise. Economics is really a very subjective/abstract social exercise, because it dictates everything from jobs (lack of which can cause civil unrest), it dictates rural-urban migration patterns of people (based on per capita income and real estate inflation), it shifts the opportunities of wealth creation, it changes the gender equation in society; Working women with their own freedom make independent choices which in turn affects the over social dynamic (age of marriage, number of children, position within family and society, and eventually voting patterns). It also dictates people's attitudes towards saving money versus spending versus investing. Our Bittuji many a times falls in that trap of seeing economics from a purely numerical perspective of percentages and decimals and pie charts, without seeing the social impact of it.

Indeed besides some fanboyism in past, @HariPrasad-1 was a very knowledgeable member, now he has started writing more maturely too.

More numbers ≠ Maturity.

The pro-capitalism economists make it look like a greater % is everything, (social impact be damned) and the pro-commie economists make it look like wealth distribution/ doles is everything, growth be damned. Therefore, whichever decision the GOI takes, people criticize it, but more often than not governments think more holistically than economists.

Go to any economic school, the topic of 'Indian economics' is taught as a separate subject as opposed to global economics, of which the US, China, Germany, Japan are a part. This is because our production-consumption patterns are geared such that most of our demand-supply equations are satisfied domestically (except crude oil and weapons). India is not plugged into the global economy like China is, therefore global economic activity rising/falling by [X%] has a very different/nominal social impact on India than it does on Chinese GDP. This is why, when there is global meltdown, China is affected along with US, Japan and Germany, but Indian economy stayed afloat even during the worst meltdown of 2008.

China being plugged into the global economy allows them to use the option of economic blackmail for economic warfare, but India cannot do the same. China is able to convert its economic investments into instruments of comprehensive national power and wield it as a weapon by playing realpolitik, India has not been able to graduate to that level yet where we can use our economy to influence global issues. (We only have a limited and temporary bargaining leverage when we are out shopping for weapons, but no long term blackmailing capacity.)

This is relevant :

 

[Indx TechStyle]

wouldnt this move encourage us to buy more foreign things as they would get cheaper and for foreigners our products demand could decrease too

This would also increase the value what we have in storage .

 

[HariPrasad-1]

So, it is not Modi government made this happen, it is Trump government.

I an see something parallel between Vajpayee government and modi government. When Vajpayee took over, rupee was falling because of policies of previous govt. When Vajpayee put the house in order it stared strengthening and reached Rs 44 against USD.

In 2002 it was 49 against USD and rose to 43.75 when Vajpayee left. This was a bug jump of 12% in 2 years. Now rupee has started appreciating and we can hope to continue the same and reach 60 at least by 2018.

 

[pringles]

I an see something parallel between Vajpayee government and modi government. When Vajpayee took over, rupee was falling because of policies of previous govt. When Vajpayee put the house in order it stared strengthening and reached Rs 44 against USD.

In 2002 it was 49 against USD and rose to 43.75 when Vajpayee left. This was a bug jump of 12% in 2 years. Now rupee has started appreciating and we can hope to continue the same and reach 60 at least by 2018.

They will artificially make it reach closer to 60 for the next to years, to reduce inflation before Modi goes to polls in 2019. This is purely cosmetic and temporary. In these two years, all the industries will actually be preparing for a post-2019 India in which (INR-USD) 75 will become the norm. All the FDI that we got, plus the domestic companies which are going to be set up by Reliance/ Pipavav are in the process of setting up, they will take 2 years to begin churning out their first weapon anyway. So, the next 2 years, there will be no exports and inflation can be artificially kept in check. Post-2019, INR-USD will never come below 60. It's actually a good thing.

The Japanese have devalued it to the point where 1 USD = 113 yen.

 

[Indx TechStyle]

On 26/05/14, when Modi came into power, the rate was 58.6984 rupee/us$, yesterday (15/03/17) the rate was 65.5399, which means the rupee depreciated 11.6% since Modi came in. Can we make a conclusion based on this: India decreased her GDP by 11.6% while she was struggling to increase the GDP.

Not really, he patched this all up with GDP growth rate.

 

[Bornubus]

Like the appreciation of rupee was a temporary phenomenon, in last days of UPA, Rupee going down was a temporary phenomenon because of Demonetization because people purchased Dollars with Rupees.

On January 31/01/2014, It was 62.5 INR against a USD.

New government could not reduce petrol price and diesel price proportionally because of rupee going down. In Vajpayee time, it was 44 against a USD which came down to 68 in the time of Pranab Mukharjee. Now it is rising and it is very good for economy.

He is an inferior little Chinese hiding behind Australian friend while his Paki Girlfriend thanking his post like a cheap sex slabe without reading a word in your post.



Last time @no smoking was bragging in Afghanistan related thread but when i post the facts about Indian economic Aid more than China, he ran away with his tail between his legs.

 

[HariPrasad-1]

Look at the INR VS USD graph of 2014. You can see that it was a one time dip in may when modi came to power. You can see the average USD VS INR price from Jan 14 to May 14.It was 62.50 rs expropriate.

I hope by 2019, it will be Rs 60 at-least ant that will add to 10% of GDP in nominal term. This will be a phenomenal achievement.

 

[no smoking]

He is an inferior little Chinese hiding behind Australian friend while his Paki Girlfriend thanking his post like a cheap sex slabe without reading a word in your post.

Last time @no smoking was bragging in Afghanistan related thread but when i post the facts about Indian economic Aid more than China, he ran away with his tail between his legs.

I am here to discuss about issue, has no interest to get involve into a personal attack with a teenager. I just simply add you into my ignore list.

 

[no smoking]

Correction:

If you point out my fanboyism than I am ready to discuss it except in few cases when I intentionally trolled some Porkis, Chinks and sickular to make them fill uneasy in discussion. I have done that a lot of PDF also. The fact of the matter is that I know something which others do not know. When I write this on forum, people thinks that I am a fanboy.

Well, calling others with racist term already becomes popular in this forum.

For example, when I wrote that kaveri is almost ready and faces one problem of noise, Kunal Bishwas was not ready to believe that. After few days, when the article was published in media and I quoted that, he said ok it seems true. same was the case when I wrote tejas faces aerodynamic of canopy and other aerodynamics issue and it is all set to correct it, people thought that I am a fanboy.

Well, from my point of view, I won't say it is ok until I see more than 20 fighter jets flying with Kaveri. The matter of fact is there are too many stories made by reporters or even scientists that some products are ok, which turns out to be not OK later.

When I wrote that few years ago that Brahmos has a range of 600 KM and it travels faster than Mach 2.8, people said that I am a fanboy. They asked for the reference which I can not provide. Now it is turning out to be true.

Brahmos just tested the 600 KM this year. The time when you were talking about this, Russian didn't extend the range for Brahmos yet. And the simple fact was that India couldn't do it without help from Russian. So, your story at the time was not true.

 

[no smoking]

It was artificially bought down for a short time period after it touched Rs 68 few months back and that rate was not sustainable. take the average of last six month and talk.

Since you want talk about last six month, let's talk about last six month.

Among last Sep and Oct, the rupee was moving around between 66-67 before it got down to 66.21773 on 08/11/16. Then suddenly, rupee started depreciation dramatically, on 23/11 it reached 68.7555. You know what happened on 08/11/16? Modi abolished RS 500 and RS 1000! After that the Rupee was hanging around between 67-68 for 2 months, then started to go down at the end of January which was caused Trump's policy (weak US dollar).

And if we look at the longer period from Modi came into office.
Before he walked in the office, on 19/04/14, rupee reached 58.43 (the strongest in past 4 years). After he started his rule, rupee had been depreciating from 58 to 68.799 on 26/02/16. After that, again, rupee appreciated a little bit and kept stable between 66-67.

So, from the history, I really didn't how his policy improve rupee exchange rate.

And if we look at the trade balance history of India, it was not improved either even though the oil price has been very low since Apr 2015.

My points are:
1. it is too early to tell if India rupee will continue to appreciate (highly likely it will be around 66 for a while);
2. it is hardly to the movement of Rupee is the deliberately designed by Modi government;

 

[Neo]

I am here to discuss about issue, has no interest to get involve into a personal attack with a teenager. I just simply add you into my ignore list.

Wise move, put all these potty mouth trolls in your ignore list. This is the only way to maintain some quality.

 

[F-14B]

Wise move, put all these potty mouth trolls in your ignore list. This is the only way to maintain some quality.

Dose that include you @Neo @no smoking
Before calling others kids kindly refer your
Own post from 09 to 12

 

[HariPrasad-1]

Indeed besides some fanboyism in past, @HariPrasad-1 was a very knowledgeable member, now he has started writing more maturely too.

If I say that Agni 3 can strike upto southern part of Australia, people will say that I am a fanboy. If I say that Agni V weighs 23 tons and not 50 ton than people will say that I am a fanboy. If i say that India is all set to design big H bomb like P5 and already design MT scale H bomb, people will say that I am a fanboy. That is why I do not say something on forum. Let the facts come out with time. There is n point in discussing something whose reference can not be given inspite of the fact that you know that.

 

[HariPrasad-1]

Well, calling others with racist term already becomes popular in this forum.

Chinkis is certainty not offensive. On PDF, all chinese and Pakistanis say Indian Bhortis. I do not recall any incident when Indian tell that resist. Pakistanis are called Pakis. Certainly Porkies is offensive but Pakis are not and so as chinkis and Bhortis. You are also on PDF and you know that.

 

[HariPrasad-1]

Well, from my point of view, I won't say it is ok until I see more than 20 fighter jets flying with Kaveri. The matter of fact is there are too many stories made by reporters or even scientists that some products are ok, which turns out to be not OK later.

I can assure you that if we fit Tejas with kaveri, it will perform well and it will not fall down in numbers like J 10. Atleast 5 fell don in 2015 and 4 in 2014. We are in no hurry to score point by employing substandard quality of defense equipment. I agree with you and I will wait to see 20 Tejas flying with kaveri.

 

[HariPrasad-1]

Among last Sep and Oct, the rupee was moving around between 66-67 before it got down to 66.21773 on 08/11/16. Then suddenly, rupee started depreciation dramatically, on 23/11 it reached 68.7555. You know what happened on 08/11/16? Modi abolished RS 500 and RS 1000! After that the Rupee was hanging around between 67-68 for 2 months, then started to go down at the end of January which was caused Trump's policy (weak US dollar).

Last six month phenomenon includes demonetization in which Dollars were purchased in big numbers to manage old note currencies. Its effect lasted for almost a month. If Indian curreny has strengthen because of Trump's Policy, the same should happen with all other currencies. Has USD depreciated 2% against all other currencies. Has INR VS all other currencies have remained stable? COme with facts to take argument Ahead.

And if we look at the longer period from Modi came into office.
Before he walked in the office, on 19/04/14, rupee reached 58.43 (the strongest in past 4 years). After he started his rule, rupee had been depreciating from 58 to 68.799 on 26/02/16. After that, again, rupee appreciated a little bit and kept stable between 66-67.

I have already answered so do not repeat it again and again. And do not bring in Modi. I do not mention Modi in my article. You are such a narrow mentality guy who tries to derail the thread as per mentality. I simply discussed the Strengthening of rupee and its effect on Indian economy.

1. it is too early to tell if India rupee will continue to appreciate (highly likely it will be around 66 for a while);

I agree.

2. it is hardly to the movement of Rupee is the deliberately designed by Modi government;

What is this? I am not able to understand.

 

[HariPrasad-1]

Brahmos just tested the 600 KM this year. The time when you were talking about this, Russian didn't extend the range for Brahmos yet. And the simple fact was that India couldn't do it without help from Russian. So, your story at the time was not true

We did not need Russian help to extend it. This is just a formal announcement of increase in range. It had 600 KM range right from the beginning. You must know that any missiles range can not be doubled in few days after announcement of intention of increase in range. Brahmos has 600 KM range was told by none other than DRDO ex chief Vijay kumar saraswat. It is a different matter that It was not pointed out by any media. Saraswat also told that Agni 5's range is much higher. If you want it to strike 6000 kM, it will strike 6000 KM, If you want 7000 KM , It will go 7000 KM and whatever range want. He said that. It was also gone unnoticed by media. So do not come here and teach me that with the Russian help, the rane was increased by 50% in couple of month and 100%+ range increase is planned in 6 month. Nobody can do that. If it is possible why do not you guys do that?